Michael Jackson Death Trial -- Jackson Family LOSES

Michael Jackson Death Trial

Jackson Family Loses

10/2/2013 9:00 PM PDT BY TMZ STAFF

The Jackson family just LOST their bid to hold AEG Live accountable for Michael Jackson's death.

The jury ruled AEG Live did hire Conrad Murray. That's huge. The jury then ruled Conrad Murray was NOT unfit or incompetent to treat MJ. Katherine and the kids lose.

So here's the thing. The question that ruined Katherine's case was whether Murray was competent to handle Jackson when he was hired, and the jury said he was. Ironically, a jury in the criminal case ruled Murray then went off the rails and did things that ultimately killed MJ. But because he was competent at the outset -- the Jackson family lost.

The jury foreman confirmed this during a post-court news conference where he said they felt Murray was competent to do the job for which he was hired -- a good general practitioner. However he added, "That doesn't mean we felt he was ethical. Had that question been in there, it could have been a different outset.

Katherine Jackson and Michael's 3 kids were suing AEG, claiming the company negligently hired and supervised Dr. Conrad Murray and pushed MJ way beyond the limits for his "This Is It" tour.

AEG claimed Michael hired Murray and what went on between them was a secret to all ... including AEG.